By Kori Hale
- Human-first InsurTech model is building an army of empowered agent
- The U.S. life insurance and annuities market is projected to hit $1.54T by 2029
People often think insurance innovation will replace agents, but it actually reshapes their role in new ways. Yet human expertise remains essential with InsurTech companies, as the U.S. life insurance and annuities market is projected to hit $1.54 trillion by 2029, according to Statista. This is why Tray Honeycutt, founder of Honeycutt Insurance, is leaning into how insurance agents are leading innovation through a people-first strategy that blends new technology with valuable personal expertise.
Why This Matters: The agent-centric model remains more relevant than ever, even as digital solutions grow. An Accenture study shows 49% of insureds want to speak with a human advisor when filing a claim. Only 12% prefer automated services and 7% would use a chatbot. For multicultural communities who often rely on trust-based relationships in financial decisions, the value of human guidance cannot be overstated.
When most InsurTech companies are focused on cutting out the middleman, Honeycutt is doubling down on keeping people at the heart of the process. Instead of automating agents out of the equation, his model flips the script: equip, empower, and elevate. By pairing cutting-edge technology with hands-on mentorship, Honeycutt Insurance is transforming the insurance industry into an ecosystem where leaders are made, not replaced.
“It’s not just about business, it’s about transformation,” Honeycutt said. “We’re helping everyday people become leaders, providers, and entrepreneurs. And when people grow, the business grows.”
That philosophy translates into real numbers because new full time agents in his system can write $15,000 to $30,000 in monthly issued premiums. In Honeycutt’s words “the ripple effect of one leader developing another, and then another, creates a cycle of empowerment and economic mobility.”
Insur-ing Wealth: In this high-stakes, high-touch industry, human expertise remains essential as insurance plays a critical role in alleviating wealth accumulation issues. Life insurance policies, for example, can provide a financial safety net for families in the event of a loved one’s death, helping to cover funeral costs and providing income replacement or enabling wealth transfer.
Taking out a life insurance policy is an effective way for families to build generational wealth. “There’s no easier way to pass on generational wealth than to have a life insurance policy with named beneficiaries,” Scott Ford, president of affluent wealth management at U.S. Bank stated on the company’s website. “It’s a tax-free wealth creation tool that allows you to leave an even bigger legacy for future generations.”
Currently, Black families have the highest increasing rate of life insurance ownership among all racial groups at 56%, compared to 52% for the total U.S. adult population, a LIMRA study found. The major increase in these life insurance percentages came during the pandemic, which disproportionately impacted minority communities.
What’s Next: Right now the industry’s distribution model faces a radical alteration because insurance agents aren’t becoming obsolete. In fact, according to McKinsey that’s not even what customers want. A recent report by the company found that 71% of consumers expect tailored service, and 76% get frustrated when companies don’t deliver it. Hence why we could use more InsurTech companies leading innovation by putting human connections first in our digital world.
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